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Altura Mining Limited (AJM)
Lithiu
m: D
eve
loper
AJM.asxSpeculative Buy
Share Price
Valuation $0.32
Price Target (12 month) $0.35
Brief Business Description:
Hartleys Brief Investment Conclusion
Chairman & MD
Major Shareholders
Allan Buckler (Shazo) (15.1%)
Terry Smith (Hartco) (14.4%)
Company Address
Issued Capital 968.2m
- fully diluted
Market Cap
- fully diluted
Cash (30 Jun 16e) A$5.2m
Debt (30 Jun 16e) A$18.5m
EV
EV/Resource Spod.
EV/Reserve Spod.
Prelim. (A$m) FY18e FY19e FY20e
Prod (spod Mt) 0.102 0.196 0.242
Op Cash Flw 64.5 102.1 98.8
Norm NPAT 58.3 90.5 79.0
CF/Share (cps) 4.3 6.8 5.9
EPS (cps) 5.9 9.0 7.7
P/E 4.8 3.1 3.6
Mt Li2O Spod.
Resources (Li2O) 35.7 1.04% 6.2
Reserve (Li2O) 18.4 1.07% 3.3
Trent Barnett
Head of Research
Ph: +61 8 9268 3052
Analyst has a beneficial interest in AJM.asx
1133.9m
A$203.3m
A$238.1m
A$216.6m
A$34.9/t
A$66.0/t
Subiaco, WA, 6008
Large deposit, ability to sign offtake agreements,
sensible ramp-up plans.
James Brown (MD)
17 May 2016
$0.210
Large spodumene development in WA with no
impediments to signing offtake.
Units 5 & 6, 25 Hamilton St
ALTURA MINING LIMITED (AJM)
An advanced Pilgangoora lithium project AJM has been developing its Pilgangoora lithium project since 2010 (having
acquired the ground in 2001). The Company has a resource at Pilgangoora
of 36Mt @1.05% Li2O and a reserve of 18.5Mt @1.07% Li2O. The deposit
does not contain tantalite. The Company has completed a FS and is
progressing to a DFS. The FS estimates capex to be A$129m (~$160m
including working capital) based on a 1.4Mtpa operation.
We believe that a 1.4Mtpa start-up operating with a potential expansion to
2Mtpa is a sensible way to enter the market. Current LCE demand is ~200kt
pa and the 1.4Mtpa operation will add ~31ktpa (ie 15%) of LCE. Remember,
every 1 million new electric vehicles (EVs) requires roughly 20kt LCE (Tesla
vehicles require more).
Combined with competitor projects, it means there is reasonable short term
LCE supply that could enter the market, and AJM bringing on a project of 10%
of current supply is aggressive enough, in our view. The ability to increase to
2Mtpa is positive for off-take should demand grow faster than anticipated.
The simple flow sheet (does not depend on tantalite credits) is another
positive for AJM. Note, we assume are more conservative on recoveries than
the study work to date (we assume 75% versus Company estimate of ~83%).
Binding offtake with customer an AJM shareholder AJM has a binding off-take agreement with Lionergy (also a shareholder of
AJM) for 100ktpa of spodumene (~16ktpa LCE) which is around half of AJM’s
expected production. AJM also has a non-binding MOU for off-take with
Optimum Nano Battery Co. Lionergy has been in the Chinese lithium industry
for 20 years. Optimum Nano has 26% market share of EV lithium batteries
in the Chinese domestic market. Critically, AJM has had control over off-take.
Coal assets conservatively valued low
AJM has a medium term plan to divest the Indonesian coal assets (as
announced in 2014). It was intended to list them on the SGX, but that is on
hold. The mines are currently operating at ~0.75Mtpa (AJM interest varies
from 30-70%). However, cash flows are low, and we attribute minimal value
for these assets. We understand that the US$12m debt/vendor finance is
non-recourse back to AJM, hence the track record of negotiating extensions.
Initiate with Speculative Buy We are initiating on AJM with a Speculative Buy. We believe the lithium
project is progressing well. Although head grade is lower than neighbouring
projects, we are very encouraged with the advanced negotiations that AJM
has had with off-take partners. Current and expected spodumene selling
prices are high enough for projects to carry weaker head grades, the key is
an ability to sell the product into the market. We believe that AJM appears
very well advanced on that front. An ability to sign offtakes quickly is very
important for debt financing. It is also critical given there is no liquid spot
market to sell spodumene. We are initiating with a Speculative Buy
recommendation. The Speculative aspect is pending financing.
We have a 32cps base valuation (assume dilution of additional ~370m
shares). We have a spot valuation of 46cps. Note, we assume an expansion
to 2Mtpa in 2019. The DFS due in Q3 is an important milestone.
Hartleys Limited ABN 33 104 195 057 (AFSL 230052) 141 St Georges Terrace, Perth, Western Australia, 6000
Hartleys does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the
firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single
factor in making their investment decision. Further information concerning Hartleys’ regulatory disclosures can be found on Hartleys
website www.hartleys.com.au
0.00
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0.10
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0.25
0.30
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10.
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May-16Jan-16Sep-15Jun-15
Volume - RHS
AJM Shareprice - LHS
Sector (S&P/ASX SMALL RESOURCES) - LHS
A$ M
Altura Mining Ltd
Source: IRESS
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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SUMMARY MODEL
Altura Mining Ltd Share Price
AJM $0.210 Speculative Buy
Key Market Information Directors Company Information
Share Price $0.210 No Chairman (role rotates among non-exec) Units 5 & 6, 25 Hamilton St
Market Capitalisation - ordinary A$238m James Brown (MD) Subiaco, WA, 6008
Net Debt (cash) $13m Paul Mantell (Exec) Ph +61 8 9488 5100
Market Capitalisation - fully diluted A$238m Allan Buckler (Non-exec)
EV A$251m BT Kuan (Non-exec)
Issued Capital 968.2m Dan O'Neill (Non-exec) www.alturamining.com
#REF! Chris Evans (GM operations)
Options 165.7 Top Shareholders Ord Diluted Notes
Issued Capital (diluted for options) 1133.9m m sh. % m sh. %
Issued Capital (diluted inc. options and new capital) 1488.6m Allan Buckler (Shazo) 146.5 15.1% 139.4 #REF!
1 Terry Smith (Hartco) 139.4 14.4% #REF! #REF!
12month price target $0.35 2 #REF! #REF!
3 Reserves & Resources Mt Li % Ta2O5
P&L Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 4 Pilgangoora M+I 26.7 1.05% -
Net Revenue A$m 0.0 119.2 228.6 236.7 237.3 5 Pilgangoora Inf 9.0 1.02% -
Total Costs A$m -5.2 -49.2 -91.3 -102.9 -112.4 6 Pilgangoora Total 35.7 1.04% -
EBITDA A$m -5.2 70.0 137.3 133.8 125.0 7
- margin - 59% 60% 57% 53% 8 Pilgangoora Reserve 18.4 1.07% -
Depreciation/Amort A$m -4.4 -9.7 -14.4 -17.8 -19.2 9
EBIT A$m -9.6 60.3 122.9 116.0 105.8 Global Total 35.7 1.04% n/a
Net Interest A$m -1.3 -2.0 -2.1 -3.2 -5.1 10 Global Reserve 18.4 1.07% -
Pre-Tax Profit A$m -10.8 58.3 120.9 112.8 100.7 Production Summary Unit Jun 17 Jun 18 Jun 19 Jun 20 Jun 21
Tax Expense A$m 0.0 0.0 -30.4 -33.8 -30.2
Normalised NPAT A$m -10.8 58.3 90.5 79.0 70.5 Processed Mill Throughput Mt 0.73 1.40 1.73 2.00
Abnormal Items A$m 0.0 0.0 0.0 0.0 0.0 Mined grade Li % 1.12% 1.12% 1.12%
Reported Profit A$m -10.8 58.3 90.5 79.0 70.5 Produced Spodumene - Technical Mt 0.000 0.000 0.000 0.000
Minority A$m 0.0 0.0 0.0 0.0 0.0 Produced Spodumene - Battery Mt 0.102 0.196 0.242 0.280
Profit Attrib A$m -10.8 58.3 90.5 79.0 70.5 Produced Tantalite Mlb pa 0.000 0.000 0.000 0.000
Produced Spodumene - Battery Eq Mt 0.102 0.196 0.242 0.280
Balance Sheet Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 LCE equiv (0.16x Spod) ktpa 16.2 31.4 38.6 44.8
Cash A$m 71.0 50.2 71.9 115.8 187.5 Mine Life yr 13.50 12.50 11.50 10.50
Other Current Assets A$m 2.4 17.1 30.6 31.6 31.6 Assumed Mining Inventory Mt 26.0 24.6 23.0 21.0
Total Current Assets A$m 73.4 67.2 102.4 147.3 219.1 Assumed Mining Inventory - Li grade % 1.12% 1.12% 1.12% 1.12%
Property, Plant & Equip. A$m 100.4 145.7 181.4 190.0 172.8 Assumed Mining Inventory - Tant grade % 0.0% 0.0% 0.0% 0.0%
Exploration A$m 15.7 16.1 16.5 16.9 17.3 Capex -105.0 -55.0 -50.0 -26.5 -2.0
Investments/other A$m 22.9 22.9 22.9 22.9 22.9 Costs Unit Jun 17 Jun 18 Jun 19 Jun 20 Jun 21
Tot Non-Curr. Assets A$m 139.1 184.8 220.8 229.9 213.1 Cost per milled tonne $A/t 39.1 36.0 34.9 34.3
Total Assets A$m 212.5 252.0 323.3 377.2 432.2 EBITDA / tonne milled ore $A/t 96.6 98.1 77.6 62.5
Total cost per milled tonne 67.9 65.2 59.6 56.2
Short Term Borrowings A$m 0.4 0.4 0.4 0.4 0.4 Total Cash Costs $A/t Spod. Batt. eq 484.8 465.7 426.0 401.3
Other A$m 2.1 13.4 24.2 27.1 29.6 C1: Operating Cash Cost = (a) $A/t Spod. Batt. eq 279.2 257.2 249.6 245.0
Total Curr. Liabilities A$m 2.5 13.8 24.6 27.5 30.0 (a) + Royalty = (b) $A/t Spod. Batt. eq 382.6 359.9 335.8 319.6
Long Term Borrowings A$m 105.9 75.9 45.9 17.9 - C2: (a) + depreciation & amortisation = (c) $A/t Spod. Batt. eq 374.9 330.5 323.4 313.5
Other A$m - - - - - (a) + actual cash for development = (d) $A/t Spod. Batt. eq 825.0 514.4 360.9 253.6
Total Non-Curr. Liabil. A$m 105.9 75.9 45.9 17.9 - C3: (c) + Royalty $A/t Spod. Batt. eq 478.2 433.1 409.7 388.1
Total Liabilities A$m 108.4 89.7 70.4 45.4 30.0 (d) + Royalty $A/t Spod. Batt. eq 928.4 617.0 447.2 328.2
Net Assets A$m 104.1 162.4 252.8 331.8 402.3 Price Assumptions Unit Jun 17 Jun 18 Jun 19 Jun 20 Jun 21
Net Debt A$m 35.3 26.1 -25.6 -97.5 -187.1 AUDUSD US$/A$ 0.69 0.73 0.75 0.76 0.77
Spodumene - Technical US$/t 1050 1206 1244 1089 933
Cashflow Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 Spodumene - Chemical (ie Battery) US$/t 675 775 800 700 600
Operating Cashflow A$m -5.2 66.6 134.6 135.8 127.3 Tantalite US$/t 60 60 60 60 60
Income Tax Paid A$m 0.0 0.0 -30.4 -33.8 -30.2 Hedging Unit Jun 17 Jun 18 Jun 19 Jun 20 Jun 21
Interest & Other A$m -1.3 -2.0 -2.1 -3.2 -5.1 none
Operating Activities A$m -6.5 64.5 102.1 98.8 92.0 Sensitivity Analysis
Valuation FY21 NPAT
Property, Plant & Equip. A$m -105.0 -55.0 -50.0 -26.5 -2.0 Base Case 0.32 70.5
Exploration and Devel. A$m -0.4 -0.4 -0.4 -0.4 -0.4 Spot Prices 0.46 (44.0%) 117.4 (66.5%)
Other A$m 0.0 0.0 0.0 0.0 0.0 Spot USD/AUD 0.73, Chemical Spod $750/t.
Investment Activities A$m -105.4 -55.4 -50.4 -26.9 -2.4 AUDUSD +/--10% 0.26 / 0.39 (-18.0% / 22.0%) 57.6 / 86.2 (-18.3% / 22.4%)
Spodumene - Technical +/--10% 0.32 / 0.32 (0.0% / 0.0%) 70.5 / 70.5 (0.0% / 0.0%)
Borrowings A$m 89.0 -30.0 -30.0 -28.0 -17.9 Spodumene - Chemical +/--10% 0.39 / 0.26 (19.8% / -19.8%) 84.7 / 56.3 (20.1% / -20.1%)
Equity or "tbc capital" A$m 89.0 0.0 0.0 0.0 0.0 Tantalite +/--10% 0.32 / 0.32 (0.0% / 0.0%) 70.5 / 70.5 (0.0% / 0.0%)
Dividends Paid A$m 0.0 0.0 0.0 0.0 0.0 Production +/--10% 0.38 / 0.26 (19.0% / -19.0%) 84.0 / 56.9 (19.2% / -19.2%)
Financing Activities A$m 178.0 -30.0 -30.0 -28.0 -17.9 Operating Costs +/--10% 0.30 / 0.34 (-6.0% / 6.0%) 65.9 / 75.0 (-6.5% / 6.5%)
Unpaid Capital
Net Cashflow A$m 66.1 -20.9 21.7 43.9 71.7 Year Expires No. (m) $m Avg price % ord
30-Jun-16 159.5 3.2 0.02 16%
Shares Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 30-Jun-17 0.0 0.0 0.00 0%
Ordinary Shares - End m 1340.0 1340.0 1340.0 1340.0 1340.0 30-Jun-18 0.0 0.0 0.00 0%
Ordinary Shares - W'ted m 1154.0 1340.0 1340.0 1340.0 1340.0 30-Jun-19 0.0 0.0 0.00 0%
Diluted Shares - W'ted m 1160.2 1346.2 1346.2 1346.2 1346.2 30-Jun-20 0.0 0.0 0.00 0%
TOTAL 159.5 3.2 0.02 16%
Ratio Analysis Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 Valuation $m $/shr
Cashflow Per Share A$ cps -0.6 4.8 7.6 7.4 6.9 100% Pilgangoora (pre-tax NAV at disc. rate of 12%) 712 0.48
Cashflow Multiple x -37.5 4.4 2.8 2.8 3.1 Other Assets/Exploration 30 0.02
Earnings Per Share A$ cps -0.9 4.3 6.8 5.9 5.3 Forwards 0 0.00
Price to Earnings Ratio x -22.3 4.8 3.1 3.6 4.0 Corporate Overheads -130 -0.09
Dividends Per Share AUD - - - - - Net Cash (Debt) -13 -0.01
Dividend Yield % 0.0% 0.0% 0.0% 0.0% 0.0%
Net Debt / Net Debt + Equity% 25% 14% -11% -42% -87% Tax (NPV future liability) -121 -0.08
Interest Cover X na 29.5 59.7 36.6 20.7 Options & Other Equity 3 0.00
Return on Equity % na 36% 36% 24% 18% Total 480 0.32
Analyst: Trent Barnett
+61 8 9268 3052
"tbc capital" could be equity or debt. Our valuation is risk-adjusted for how this may be obtained.
Sources: IRESS, Company Information, Hartleys Research
17 May 2016
17 May 16
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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BUSINESS OVERVIEW AJM are developing the Pilgangoora spodumene project in northern WA (note
PLS.asx is also developing a separate project in the region with the same name).
AJM also has stakes in producing coal assets in Indonesia, but at current prices they
are marginal. By far the main value driver in AJM is the lithium asset.
PILGANGOORA (100%) Pilgangoora is a spodumene deposit in the Pilbara region of WA. AJM has been
progressing the project since 2010. It was drilled by AJM between 2010 and 2012
on a 40x40 spacing (282 RC holes and 8 diamond holes). The Company held the
ground as application since 2001.
The project is approximately 123km drive from the town of Port Hedland. Road
access to the site is via the Great Northern Highway and then Shire roads and
station tracks.
The study plan is for a 1.4Mtpa operation to produce ~215ktpa of lithium spodumene
concentrate per annum, commencing Q3 2017. The life of mine (LOM) is expected
to be 14 years, based on an indicated and inferred resource of 35.7Mt. Mill feed is
expected to be 1.15-1.2% Li2O, which is higher than the reserve and resource grade
of ~1.05%. The mine plan assumes grade streaming such that the Company builds
a low grade stockpile which will be processed in the later years (year 12-14).
The strip ratio is higher in year one (4.1:1), but then falls to 2.7:1.
Near term risks are finalisation of native title and pastoral lease agreements, neither
of which we believe will be problematic.
Fig. 1: Pilgangoora Resource
Source: AJM
AJM is well advanced
in the development of
the Pi lgangoora
l i th ium mine in the
Pi lbara.
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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Fig. 2: Pilgangoora cross section
Source: AJM
Fig. 3: Pilgangoora mine plan
Source: AJM
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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Fig. 4: Pilgangoora process flowsheet
Source: AJM
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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Fig. 5: Pilgangoora 3D model
Source: AJM
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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DELTA COAL MINE (33%) The Delta Coal Mine in East Kalimantan produces mid-rank thermal coal. Altura owns
a one-third stake. Production is has reduced to 0.75 Mtpa in order to low only lower
cost areas but does have plans to increase back up to 1.5 Mtpa (Company expects
no additional capital). Coal from the Delta mine is sold “unwashed”, meaning there is
no metallurgical treatment required to achieve a saleable product. Delta coal is sold
as a medium energy thermal product to both the export and domestic markets with all
ROM coal considered saleable product
The operation is currently cash flow positive, but small. We value the AJM stake
minimally.
TABALONG COAL MINE (70%) The Tabalong Coal project in South Kalimantan is pending final forestry approval. All
other approvals have been granted. The Tabalong project includes five IUPs covering
17,000 hectares and has confirmed high calorie thermal coal. Initial production is
targeted at 500,000 moving quickly to 1.5 Mtpa. Altura has announced its intentions
to divest its coal interests including its holding in Tabalong.
Under the terms of the joint venture agreement, Altura holds 70% of the Tabalong
Coal Project, with PT Unitras Jaya Investama (UJI) holding the remaining 30%.
We value Tabalong at zero in our valuation minimally. We hope that a transaction can
extinguish the debt.
MT WEBBER IRON ORE ROYALTY AJM has a 1% revenue royalty over 30% of Mt Webber’s production of the FOB sales
price when the 62% Fe price averages greater than A$95 in the month of delivery. If
the mine is operating at 6mtpa, then AJM share that royalty applies to is only 2mtpa.
We value royalty at zero. If the iron ore price was A$105, then the royalty would
generate roughly $0.3m pa, which is barely material anyway.
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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INDUSTRY EXPOSURE AJM is exposed to thermal coal prices, but given we value the assets at zero, our
valuation is only sensitive to improving coal prices.
The main value driver, in our view, is the exposure to the spodumene Li price.
Consequently, AJM is exposed to the lithium carbonate price. This, in turn, is driven
by the demand for lithium batteries. As a rule of thumb, to convert spodumene tonnes
into LCE tonnes, multiple spodumene volumes by 0.16x.
Current demand for LCE is ~200ktpa, which is satisfied by current supply. However,
demand is expected to grow significantly. Forecasts depend largely on the take up of
lithium battery cars, for which industry is uncertain. However, most forecasts assume
~100ktpa of additional LCE is required by 2020 (50% increase). The world has
enough resources to satisfy that demand, and hence there is a short window to get
into production. Those mines likely to enter production will be those that can sign
offtakes. Offtake partners normally want high quality product (low impurities), low
sovereign risks, long mine life and robust projects (basically security of supply).
However, it is possible that demand could exceed current estimates.
We estimate that if electric vehicle market share is around 11% by 2025 (currently
~1.5%) then global LCE demand will be ~400kt, which seems to be close to consensus
estimates for demand. However, if market share increases faster (~extra 100bp pa),
such that penetration is 17% by 2025 then global LCE demand could be 500kt by
2025. If demand truly accelerated, and penetration reach ~45% by 2025, then LCE
demand would be 900kt. If penetration rates are slower, then the point at which
demand reaches 500kt pa may be deferred, but ultimately the structural demand for
LCE is still very strong.
Note, AJM is not planning to sell technical grade spodumene, which is used in the
ceramics and glass industry (which is driven by global consumer growth). Technical
grade spodumene sells for a higher price, but market growth is much lower.
Fig. 6: Hartleys simple LCE demand forecasts
Source: Hartleys
0
100
200
300
400
500
600
700
800
900
1000
2016 demand Electric Vehiclemarket share
11% of new carsales in 2025
market share17% in 2025
market share24% in 2025
market share31% in 2025
market share47% in 2025
LCE demand in 2025
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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Fig. 7: Lithium Carbonate outlook
Source: PLS
Fig. 8: Electric Vehicle current market share new care sales
Source: http://www.iea.org/evi/Global-EV-Outlook-2015-Update_1page.pdf
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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Fig. 9: Every 1M EV is ~20kt LCE
Source: Albermale
Fig. 10: Tesla Giga Factory
Source: http://cleantechnica.com/files/2015/07/Tesla-Gigafactory-new-3.jpg
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
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GEOGRAPHIC EXPOSURE The Pilgangoora mine in is located in the Pilbara, Western Australia.
AJM has coal assets in Indonesia. It also has an office in the Philippines to pursue
coal assets.
Fig. 11: Project Locations
Source: AJM, Maps
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 12 of 23
PEERS AND COMPETITORS
Fig. 12: Listed peers
Source: Hartleys, IRESS, various.
Company Ticker Last Quot. Mkt CapStatus
International
Albemarle Corp ALB.NYS 77.81 8,735
Chemical and Mining Co of Chile Inc SQM.NYS 21.36 5,622
FMC Corp FMC.NYS 47. 6,289
Tesla Motors Inc TSLA.NAS 208.29 27,635
GANFENGLITHIUM 002460.SHE 70.46 27,031
ASX Listed
1. Mineral Resources Limited MIN 7.88 1,457 Producer (Spod.)
2. Orocobre Limited ORE 3.8 802 Producer (Brine)
3. Pilbara Minerals Limited PLS 0.755 785 Developer (Spod.)
4. Galaxy Resources Limited GXY 0.385 493 Producer (Spod.) & Developer (Brine)
5. Altura Mining Limited AJM 0.21 213 Developer (Spod.)
6. Neometals Ltd NMT 0.38 212 Producer (Spod.)
7. General Mining Corporation Limited GMM 0.58 192 Producer (Spod.)
8. Lithium Australia NL LIT 0.255 61 Explorer (Spod.)
9. Pioneer Resources Limited PIO 0.064 58 Explorer (Spod.)
10. Birimian Gold Limited BGS 0.345 52 Explorer (Spod.)
11. Dakota Minerals Limited DKO 0.135 44 Explorer (Spod.)
12. Crusader Resources Limited CAS 0.135 30 Explorer (Spod.)
13. Ardiden Ltd ADV 0.04 29 Explorer (Spod.)
14. Metalicity Limited MCT 0.076 26 Explorer (Spod.)
15. European Metals Holdings Limited EMH 0.265 26 Developer (Spod.)
16. Kidman Resources Limited KDR 0.12 25 Explorer (Spod.)17. Sayona Mining Limited SYA 0.049 24 Explorer (Spod.)
18. Zenith Minerals Limited ZNC 0.14 24 Explorer (Spod.)
19. Platypus Minerals Ltd PLP 0.035 21 Explorer (Spod.)
20. Kairos Minerals Limited KAI 0.07 19 Explorer (Spod.)
21. Prospect Resources Limited PSC 0.017 18 Explorer (Spod.)
22. Liontown Resources Limited LTR 0.025 17 Explorer (Spod.)
23. Venture Minerals Limited VMS 0.045 14 Explorer (Spod.)
24. Argosy Minerals Limited AGY 0.038 14 Explorer (Spod.)
25. Venus Metals Corporation Limited VMC 0.21 13 Explorer (Spod.)
26. Argonaut Resources NL ARE 0.018 12 Explorer (Brine)
27. Hannans Reward Limited HNR 0.016 12 Explorer (Spod.)
28. Marindi Metals Limited MZN 0.0145 11 Explorer (Spod.)
29. Exterra Resources Limited EXC 0.044 11 Explorer (Spod.)
30. Mithril Resources Limited MTH 0.018 10 Explorer (Spod.)
31. Core Exploration Limited CXO 0.034 10 Explorer (Spod.)
32. Cazaly Resources Limited CAZ 0.069 9 Explorer (Spod.)
33. Peninsula Mines Limited PSM 0.019 9 Explorer (Spod.)
34. Walkabout Resources Ltd WKT 0.005 9 Explorer (Spod.)
35. Traka Resources Limited TKL 0.032 8 Explorer (Spod.)
36. Cullen Resources Limited CUL 0.005 8 Explorer (Spod.)
37. Silver City Minerals Limited SCI 0.063 7 Explorer (Spod.)
38. Maximus Resources Limited MXR 0.0035 7 Explorer (Spod.)
39. Paynes Find Gold Limited PNE 0.083 6 Developer (Spod.)
40. Kingston Resources Limited KSN 0.027 5 Explorer (Spod.)
41. Quantum Resources Limited QUR 0.032 3 Explorer (Spod.)
*Market cap is quoted ordinary shares from IRESS. It does not dilute for options, escrow shares, performance shares, convertible
notes, recent placements etc. These can be meaningful adjustments that should be taken into account.
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 13 of 23
KEY SUPPLIERS & CUSTOMERS AJM has executed a Binding Offtake Agreement with Lionergy and a non-binding
MOU for off-take with Optimum Nano Battery Co, both in China. Lionergy also recently
became a shareholder in AJM via a private placement. Lionergy has been in the China
lithium industry for 20 years. Optimum Nano has 26% market share of EV lithium
batteries in the Chinese domestic market.
Orelogy completed the FS study. Ravensgate Mining Industry Consultants completed
the Resource.
AJM plans to export from Port Hedland, and will likely use Qube Logistics.
Fig. 13: Consultants used in FS
Source: AJM
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 14 of 23
MANAGEMENT, DIRECTORS AND
MAJOR SHAREHOLDERS
Biographies taken from Company Website
No Chairman
The Company has elected not to have a formal Chairman. The Chair of Board
meetings rotates amongst the non-executive directors.
James Brown, Managing Director
James is a mining engineer with more than 25 years’ experience in the coal mining
industry in Australia and Indonesia, including 22 years at New Hope Corporation.
James was appointed Managing Director of Altura in September 2010 and was
previously Group General Manager since December 2008.
Paul Mantell, Executive Director
Paul has more than 30 years’ corporate experience as an accountant in mining and
associated industries, including 28 years at New Hope Corporation, the last 12 years
as Chief Financial Officer. He was appointed a director in May 2009.
Allan Buckler, Non-Executive Director
A qualified mine manager with more than 40 years’ coal experience in Australia and
Indonesia, Allan joined Altura in December 2008. He has had key roles in the
establishment of several large mining and port operations in both Australia and
Indonesia. Allan is a former Director and Chief Operations Officer of New Hope
Corporation Limited and has led the development of significant operations including
PT Adaro Indonesia, PT Indonesia Bulk Terminal and PT Multi Harapan Utama in
Indonesia.
BT Kuan, Non-Executive Director
BT is a mechanical engineer with considerable experience in bulk handling and
terminal operations, including responsibility for the development and management of
the Indonesia Bulk Terminal at Pulau Laut in South Kalimantan, Indonesia. He also
has experience in Indonesia, Malaysia and Singapore with other minerals and soft
commodities including tin dredging operations, managing rubber, palm oil and cocoa
processing factories, and managing palm oil bulk terminals. BT was appointed a
director in November 2007.
Dan O’Neill, Non-Executive Director
Dan is a geologist with over 30 years’ of international mining experience, having
worked across Australasia, Africa, Asia and North America. Dan has held positions
with a number of Australian and multinational exploration companies, as well as
managed exploration programs in a diverse range of environments and locations,
including Botswana, North America, South East Asia, North Africa and Australasia.
Economic Exposure of Board and key management Total
Shares Total Options Perf shrs Economic
# # Exposure
Position millions rank
Directors
-- No Chairman (role rotates among non-exec.) - - - -
James Brown MD 21,018,300 5,500,001 2,000,000 28,518,301 3
Paul Mantell Exec Director 25,979,750 6,523,334 1,000,000 33,503,084 2
Allan Buckler Non-Exec Director 146,511,409 30,682,283 200,000 177,393,692 1
BT Kuan Non-Exec Director 15,282,968 5,500,000 200,000 20,982,968 4
Dan O'Neill Non-Exec Director 10,877,780 3,555,556 200,000 14,633,336 5
Source: AJM
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 15 of 23
During his career, Dan has held executive management positions with ASX listed
companies and has worked on a range of commodities including diamonds, gold, base
metals, coal, oil and gas. He was appointed a director on 18 December 2008.
MAJOR SHAREHOLDERS There are two substantial shareholders. Allan Buckler (a Non-executive director) is a
substantial shareholder with 15.1% and Terry Smith (14.4%).
OPTIONS, CONVERTIBLES AND UNPAID CAPITAL There are ~159m options at 2cps strike that expire in June this year. If all options were
exercised it would raise ~$3.2m.
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 16 of 23
FINANCIALS
PRODUCTION / PROFIT & LOSS
Company guidance The Company is progressing with a DFS, and hopes to enter construction in CY17
with first production in late CY17.
Hartleys Forecasts Our model is in line with guidance. We do recognise that it is an aggressive timetable,
and hence there is risk of slippage, in our view.
Fig. 14: Production and Profit and Loss
Source: Hartleys Research Estimates
BALANCE SHEET
Fig. 15: Balance Sheet
Source: Hartleys Research Estimates
P&L Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21
Net Revenue A$m 0.0 119.2 228.6 236.7 237.3
Total Costs A$m -5.2 -49.2 -91.3 -102.9 -112.4
EBITDA A$m -5.2 70.0 137.3 133.8 125.0
- margin - 59% 60% 57% 53%
Depreciation/Amort A$m -4.4 -9.7 -14.4 -17.8 -19.2
EBIT A$m -9.6 60.3 122.9 116.0 105.8
Net Interest A$m -1.3 -2.0 -2.1 -3.2 -5.1
Pre-Tax Profit A$m -10.8 58.3 120.9 112.8 100.7
Tax Expense A$m 0.0 0.0 -30.4 -33.8 -30.2
Normalised NPAT A$m -10.8 58.3 90.5 79.0 70.5
Abnormal Items A$m 0.0 0.0 0.0 0.0 0.0
Reported Profit A$m -10.8 58.3 90.5 79.0 70.5
Minority A$m 0.0 0.0 0.0 0.0 0.0
Profit Attrib A$m -10.8 58.3 90.5 79.0 70.5
Balance Sheet Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21
Cash A$m 71.0 50.2 71.9 115.8 187.5
Other Current Assets A$m 2.4 17.1 30.6 31.6 31.6
Total Current Assets A$m 73.4 67.2 102.4 147.3 219.1
Property, Plant & Equip. A$m 100.4 145.7 181.4 190.0 172.8
Exploration A$m 15.7 16.1 16.5 16.9 17.3
Investments/other A$m 22.9 22.9 22.9 22.9 22.9
Tot Non-Curr. Assets A$m 139.1 184.8 220.8 229.9 213.1
Total Assets A$m 212.5 252.0 323.3 377.2 432.2
Short Term Borrowings A$m 0.4 0.4 0.4 0.4 0.4
Other A$m 2.1 13.4 24.2 27.1 29.6
Total Curr. Liabilities A$m 2.5 13.8 24.6 27.5 30.0
Long Term Borrowings A$m 105.9 75.9 45.9 17.9 -
Other A$m - - - - -
Total Non-Curr. Liabil. A$m 105.9 75.9 45.9 17.9 -
Total Liabilities A$m 108.4 89.7 70.4 45.4 30.0
Net Assets A$m 104.1 162.4 252.8 331.8 402.3
Net Debt A$m 35.3 26.1 -25.6 -97.5 -187.1
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 17 of 23
Gearing ratios
Fig. 16: Ratios
Source: Hartleys Research Estimates
Fixed Assets There are minimal current fixed assets.
Debt The Company has a vendor loan facility from the purchase of the coal assets. The
Company refinanced the terms in March. Repayments are due in
July 2017 (US$4.15m), July 2018 (US$4.15m) and July 2019 (US$4.2m). The
Company has successfully negotiated extensions to terms, and given we understand
that it is non-recourse to AJM, it seems likely that further extnesions can be negotiated,
if required.
We expect the project will have meaningful conventional debt or a customer
prepayment.
Hedging There is no hedging, but we expect that offtakes will include a fixed price component.
CASH FLOW
Fig. 17: Cash Flow Statement
Source: Hartleys Research Estimates
Shares Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21
Ordinary Shares - End m 1340.0 1340.0 1340.0 1340.0 1340.0
Ordinary Shares - W'ted m 1154.0 1340.0 1340.0 1340.0 1340.0
Diluted Shares - W'ted m 1160.2 1346.2 1346.2 1346.2 1346.2
Ratio Analysis Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21
Cashflow Per Share A$ cps -0.6 4.8 7.6 7.4 6.9
Cashflow Multiple x -37.5 4.4 2.8 2.8 3.1
Earnings Per Share A$ cps -0.9 4.3 6.8 5.9 5.3
Price to Earnings Ratio x -22.3 4.8 3.1 3.6 4.0
Dividends Per Share AUD - - - - -
Dividend Yield % 0.0% 0.0% 0.0% 0.0% 0.0%
Net Debt / Net Debt + Equity% 25% 14% -11% -42% -87%
Interest Cover X na 29.5 59.7 36.6 20.7
Return on Equity % na 36% 36% 24% 18%
Cashflow Unit 30 Jun 17 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21
Operating Cashflow A$m -5.2 66.6 134.6 135.8 127.3
Income Tax Paid A$m 0.0 0.0 -30.4 -33.8 -30.2
Interest & Other A$m -1.3 -2.0 -2.1 -3.2 -5.1
Operating Activities A$m -6.5 64.5 102.1 98.8 92.0
Property, Plant & Equip. A$m -105.0 -55.0 -50.0 -26.5 -2.0
Exploration and Devel. A$m -0.4 -0.4 -0.4 -0.4 -0.4
Other A$m 0.0 0.0 0.0 0.0 0.0
Investment Activities A$m -105.4 -55.4 -50.4 -26.9 -2.4
Borrowings A$m 89.0 -30.0 -30.0 -28.0 -17.9
Equity or "tbc capital" A$m 89.0 0.0 0.0 0.0 0.0
Dividends Paid A$m 0.0 0.0 0.0 0.0 0.0
Financing Activities A$m 178.0 -30.0 -30.0 -28.0 -17.9
Net Cashflow A$m 66.1 -20.9 21.7 43.9 71.7
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 18 of 23
Capex requirements We assume Stage 1 capex of $160m (including working capital).
Free cash flow We estimate strong cash flow once in production based on our spodumene forecasts.
Dividends We do not expect any dividends for the foreseeable future.
EQUITY ISSUANCE We expect AJM will require equity to complete study work and finance construction.
We dilute our valuation for 370m new shares.
SENSITIVITIES
FX exposure AJM costs are based in AUD while selling prices are denominated in USD.
Interest Rate exposure We estimate that there is minimal direct interest rate exposure for AJM.
Commodity price exposure GMM is exposed the spodumene prices, which in turn can be driven by lithium
carbonate prices.
Fig. 18: Valuation sensitivity to selling prices
Source: Hartleys Research Estimates
AUD* USDAJM Val.
(A$/shr)
New Shares
(m)
A$m pa US$m pa EV/EBITDA
408 300 n/a 42$ 31$ 9.9x
476 350 0.05$ 523 59$ 44$ 7.0x
544 400 0.10$ 438 77$ 57$ 5.3x
613 450 0.15$ 406 95$ 70$ 4.3x
681 500 0.20$ 390 113$ 83$ 3.7x
749 550 0.26$ 380 131$ 96$ 3.2x
817 600 0.31$ 373 149$ 109$ 2.8x
885 650 0.36$ 369 166$ 122$ 2.5x
953 700 0.41$ 365 184$ 135$ 2.2x
1021 750 0.46$ 362 202$ 149$ 2.0x
1089 800 0.52$ 360 220$ 162$ 1.9x
1157 850 0.57$ 358 238$ 175$ 1.7x
1225 900 0.62$ 356 256$ 188$ 1.6x
1293 950 0.67$ 355 274$ 201$ 1.5x
1361 1000 0.73$ 354 291$ 214$ 1.4x
AUD/USD* 0.73
EBITDA pa LOMSpodumene Price
per tonne
Base Case
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 19 of 23
VALUATION CONSIDERATIONS AND
PRICE TARGET METHODOLOGY
VALUATION Our AJM base valuation is 32cps, based on $160m of start-up capex and funded with
debt and equity (we dilute for an extra 370m shares). We assume an expansion to
2mtpa.
The biggest risk to our valuation are spodumene prices and dilution. The net debt
position also increases risk.
Fig. 19: Hartleys estimates
Source: AJM, Hartleys Research
Scop. Study (1Mtpa)
11 Feb 2016
Scop. Study (2Mtpa)
11 Feb 2016
PFS (1.4Mtpa)
11 Apr 2016
Hartleys (base) Difference
Mining inventory 18.92Mt 18.92Mt 18.47Mt 26.35Mt 42.7%
- grade Li2O 1.15% 1.15% 1.07% 1.12% 4.7%
- grade Ta2O5
Potential Mining inventory 26.35
- grade Li2O 1.12%
- grade Ta2O5
Mine Life (yrs) 19.0yrs 10.0yrs 14.0yrs 14.0yrs 0.0%
Startup Capex - Total A$97.6m A$146.7m A$159.3m A$161.8m 1.6%
Total Capex A$97.6m A$146.7m A$159.3m A$271.5m
Mined Ore + Waste (mt pa) 3.8mt pa 7.2mt pa 4.9mt pa 7.3mt pa 49.3%
Waste (mt pa) 2.8mt pa 5.3mt pa 3.6mt pa 5.4mt pa 51.8%
Strip Ratio (x) 2.8x 2.8x 2.7x 2.9x 6.4%
- first five years 2.8x 2.8x 2.7x 2.8x 3.7%
Mill Feed (mt pa avg) 1.0mt pa 1.9mt pa 1.3mt pa 1.9mt pa 42.7%
- startup 1.0mt pa 1.9mt pa 1.3mt pa 1.0mt pa
- max 1.0mt pa 1.9mt pa 1.4mt pa 2.0mt pa
Total Spodumene Mined 2.9Mt 2.9Mt 2.7Mt 3.7Mt 34.6%
Total Tantalite Mined
Spodumene Recoveries 72.0% 73.1% 83.2% 75.0% -9.8%
Tantalite Recoveries 0.0%
Spudumene Sold 150.0ktpa 289.0ktpa 195.7ktpa 263.5ktpa 34.6%
- LCE (0.16x) 24.0ktpa 46.2ktpa 31.3ktpa 42.2ktpa 34.6%
Concentrate Grade 6.5% 6.0% -7.7%
Tantalite Sold 0klb pa
Construction date Dec-16 Dec-16 Dec-16 Dec-16 0.0%
Commisioning date Dec-17 Dec-17 Dec-17 Dec-17 0.0%
Revenue (US$) - LOM US$1,013m US$1,013m US$1,172m US$2,501m 113.5%
Costs (US$) - LOM -US$530m -US$494m -US$518m -US$927m 79.1%
- / tonne -US$ 186 /t -US$ 171 /t -US$ 189 /t -US$ 251 /t 33.0%
EBITDA (US$) - LOM US$530m US$577m US$581m US$1,574m 171.1%
EBITDA - A$ pa A$37.2m pa A$77.0m pa A$55.3m pa A$146.m pa 164.0%
- first 5 years A$145.1m pa
EV/EBITDA (year 1) 2.85x
EV/EBITDA (lom) 9.4x 5.2x 7.43x 2.83x -61.9%
Life of mine avg selling price (Spodumene) US$ fob US$ 351 /t US$ 351 /t US$ 428 /t US$ 678 /t 58.5%
Life of mine avg selling price (Tantalite) US$ fob US$ 60 /t
Life of mine avg C1 cash costs pre credit A$ 321 /t A$ 321 /t A$ 298 /t A$ 326 /t 9.3%
Life of mine avg C1 cash costs after credit A$ 326 /t
- US$ after credit US$ 251 /t
Life of mine avg C2 cash costs pre credit A$ 345 /t A$ 345 /t A$ 320 /t A$ 350 /t 9.3%
after credit A$ 350 /t
fx US$/A$ 0.75 0.75 0.75 0.77 2.9%
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 20 of 23
Fig. 20: Key Assumptions and Risks for valuation Assumption Risk of not realising
assumption Downside risk to
valuation if assumption is
incorrect
Comment
~14 year mine life Low Meaningful This appears reasonable based on current resources
Start-up at 1.4mtpa
Upside Meaningful This seems reasonable. Means the addition of supply into the market is digestible
Outer year grades slightly better than current resource grade
Moderate Moderate We assume exploration success or accretive acquisition to feed mill in outer years.
Ramp-up to 2mtpa in 2019
Moderate Meaningful An expansion seems realistic
Spodumene prices in line with our estimates
Upside/downside Meaningful We assume selling prices that are higher than historic prices
Equity and debt financing Low Meaningful We assume the project is fully funded.
No value for other assets (eg Coal and Iron ore)
Moderate Upside We assume that the coal and iron ore assets have no value.
Exploration value Moderate Meaningful We assume modest exploration value.
Conclusion Selling prices of spodumene are is the most significant risk. Obtaining the capital and time until production are also risks.
Source: Hartleys
PRICE TARGET Our price target is based on various valuation scenarios.
Price Target Methodology Weighting Spot 12 mth out
90% $0.32 $0.36
NPV at spot commodity and fx prices 5% $0.46 $0.52
Net cash 5% $0.00 $0.00
Risk weighted composite $0.31
12 Months Price Target $0.35
Shareprice - Last $0.210
12 mth total return (% to 12mth target + dividend) 66%
Source: Hartleys Estimate
NPV base case, assuming significant equity dilution
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 21 of 23
RECOMMENDATION & RISKS
INVESTMENT THESIS & RECOMMENDATION We believe AJM is a well advanced lithium project. Although grade is lower than some
peers, the advanced stage of study work and offtake negotiations is very positive.
Using current expectations of spodumene prices we believe the project is very
economic.
We are initiating with a Speculative Buy, with the Speculative aspect centred around
finalising financing and the net debt position.
RISKS The largest risk for AJM are the selling prices of spodumene, offtakes for the product
and raising the capital for construction. Other risks are similar to most producers: mine
planning, mill performance, force-majeure, counter party risks, mine life extensions,
expansions.
SIMPLE S.W.O.T. TABLE Strengths Slow ramp-up to production
MoU for offtake Potential customer is a shareholder Well understood processing
Weaknesses Unfunded Still requires offtakes and complete DFS
Opportunities Expansion of throughput New project development
Threats Metallurgical recoveries Funding requirements Takeover Selling prices
Source: Hartleys Research
The bottom l ine is
AJM is a very
advanced spodumene
developer
Hartleys Limited Altura Mining Limited (AJM) 17 May 2016
Page 22 of 23
Fig. 21: Using Hartleys base case commodity forecasts
Source: Hartleys Estimates, IRESS
Fig. 22: Using spot commodity prices
Source: Hartleys Estimates
.00
.10
.20
.30
.40
.50
.60
.70
.80
.90
AJM Actual
Hartleys Target
8x EV/EBITDA
6x EV/EBITDA
4x EV/EBITDA
2x EV/EBITDA
1x EV/EBITDA
Shareprice
.00
.20
.40
.60
.80
1.00
1.20
AJM Actual
8x EV/EBITDA
6x EV/EBITDA
4x EV/EBITDA
2x EV/EBITDA
1x EV/EBITDA
Shareprice
Page 23 of 23
HARTLEYS CORPORATE DIRECTORY Research Trent Barnett Head of Research +61 8 9268 3052
Mike Millikan Resources Analyst +61 8 9268 2805
Scott Williamson Resources Analyst +61 8 9268 3045
Simon Andrew Energy Analyst +61 8 9268 3020
Janine Bell Research Assistant +61 8 9268 2831
Corporate Finance Dale Bryan Director & Head of
Corp Fin.
+61 8 9268 2829
Richard Simpson Director +61 8 9268 2824
Paul Fryer Director +61 8 9268 2819
Ben Wale Associate Director +61 8 9268 3055
Ben Crossing Associate Director +61 8 9268 3047
Stephen Kite Associate Director +61 8 9268 3050
Scott Weir Associate Director +61 8 9268 2821
Rhys Simpson Manager +61 8 9268 2851
Registered Office
Level 6, 141 St Georges TcePostal Address:
PerthWA 6000 GPO Box 2777
Australia Perth WA 6001
PH:+61 8 9268 2888 FX: +61 8 9268 2800
www.hartleys.com.au [email protected]
Note: personal email addresses of company employees are
structured in the following
manner:[email protected]
Hartleys Recommendation Categories
Buy Share price appreciation anticipated.
Accumulate Share price appreciation anticipated but the risk/reward is
not as attractive as a “Buy”. Alternatively, for the share
price to rise it may be contingent on the outcome of an
uncertain or distant event. Analyst will often indicate a
price level at which it may become a “Buy”.
Neutral Take no action. Upside & downside risk/reward is evenly
balanced.
Reduce /
Take profits
It is anticipated to be unlikely that there will be gains over
the investment time horizon but there is a possibility of
some price weakness over that period.
Sell Significant price depreciation anticipated.
No Rating No recommendation.
Speculative
Buy
Share price could be volatile. While it is anticipated that,
on a risk/reward basis, an investment is attractive, there
is at least one identifiable risk that has a meaningful
possibility of occurring, which, if it did occur, could lead to
significant share price reduction. Consequently, the
investment is considered high risk.
Institutional Sales Carrick Ryan +61 8 9268 2864
Justin Stewart +61 8 9268 3062
Simon van den Berg +61 8 9268 2867
Chris Chong +61 8 9268 2817
Digby Gilmour +61 8 9268 2814
Veronika Tkacova +61 8 9268 3053
Wealth Management Nicola Bond +61 8 9268 2840
Bradley Booth +61 8 9268 2873
Adrian Brant +61 8 9268 3065
Nathan Bray +61 8 9268 2874
Sven Burrell +61 8 9268 2847
Simon Casey +61 8 9268 2875
Tony Chien +61 8 9268 2850
Tim Cottee +61 8 9268 3064
David Cross +61 8 9268 2860
Nicholas Draper +61 8 9268 2883
John Featherby +61 8 9268 2811
Ben Fleay +61 8 9268 2844
James Gatti +61 8 9268 3025
John Goodlad +61 8 9268 2890
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Neil Inglis +61 8 9268 2894
Murray Jacob +61 8 9268 2892
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Jamie Moullin +61 8 9268 2856
Chris Munro +61 8 9268 2858
Michael Munro +61 8 9268 2820
Ian Parker +61 8 9268 2810
Charlie Ransom
(CEO)
+61 8 9268 2868
Conlie Salvemini +61 8 9268 2833
Mark Sandford +61 8 9268 3066
David Smyth +61 8 9268 2839
Greg Soudure +61 8 9268 2834
Sonya Soudure +61 8 9268 2865
Dirk Vanderstruyf +61 8 9268 2855
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Jayme Walsh +61 8 9268 2828
Disclaimer/Disclosure
The author of this publication, Hartleys Limited ABN 33 104 195 057 (“Hartleys”), its Directors and their Associates from time to time may hold
shares in the security/securities mentioned in this Research document and therefore may benefit from any increase in the price of those securities.
Hartleys and its Advisers may earn brokerage, fees, commissions, other benefits or advantages as a result of a transaction arising from any advice
mentioned in publications to clients.
Any financial product advice contained in this document is unsolicited general information only. Do not act on this advice without first consulting
your investment adviser to determine whether the advice is appropriate for your investment objectives, financial situation and particular needs.
Hartleys believes that any information or advice (including any financial product advice) contained in this document is accurate when issued.
Hartleys however, does not warrant its accuracy or reliability. Hartleys, its officers, agents and employees exclude all liability whatsoever, in
negligence or otherwise, for any loss or damage relating to this document to the full extent permitted by law.